Futu news on April 11$BABA-SW (09988.HK) $BABA Group issued an announcement on the receipt of an "anti-monopoly investigation" notice from the State Administration of Market Supervision and Administration (Municipal Administration) on December 24, 2020, according to a notice. This announcement is a further update.

On April 10, 2021, the Municipal Administration of Supervision and Administration issued the Administrative penalty decision of BABA Group's anti-monopoly investigation.

In its decision, the Municipal Administration of Supervision and Administration concluded that BABA Group had violated the provisions of paragraph 1 (4) of Article 17 of the Anti-monopoly Law of the people's Republic of China. This provision prohibits operators with a dominant market position from imposing exclusive restrictions on the counterpart of the transaction without good reason.

According to articles 47 and 49 of the Anti-monopoly Law, the General Administration of Municipal Administration ordered BABA Group to stop its illegal activities and impose a fine of 18.228 billion yuan (about US $2.8 billion). Equivalent to 4% of BABA Group's domestic sales of 455.712 billion yuan (about US $69.6 billion) in 2019. At the same time, the Municipal Administration of Supervision issued an "Administrative instruction" to BABA Group, requiring BABA Group to strictly implement the main responsibilities of enterprises on the platform, strengthen internal control and compliance management, maintain fair competition, protect the legitimate rights and interests of businessmen and consumers in the platform, and submit self-inspection compliance reports to the Municipal Administration for three consecutive years.

The company sincerely accepts and resolutely obeys this punishment. The company will strengthen its operation according to law, further strengthen the construction of compliance system, based on innovation and development, and better fulfill its social responsibility.

Attached:BABA announcement. PDF